The Licensing Process
Under the Capital Markets and Services Act 2007 (CMSA), anyone wishes to carry out capital market activities (unless a registered person) is required to be appropriately licensed. The Securities Commission Malaysia (SC) is the sole licensing authority that approves licences for capital market intermediaries to be engaged in the regulated activities.

Under the CMSA single licensing regime, capital market intermediaries that are fit and proper is issued with only one licence that will enable them to carry on one or more regulated activities.

The SC is entrusted with the responsibility of ensuring an efficient and transparent licensing process and that the licensed intermediaries and its representatives are competent and proficient in providing their services the investors. Certified as an ISO 9001:2015 department, the SC's Authorisation & Licensing Department undertakes the assessment of licence applications under its purview within the time frame stipulated in accordance with its ISO performance standards.

There are two main types of licensing applications, namely-
  • New Capital Markets Services Licence (CMSL) – granted to a principal
  • New Capital Markets Services Representative’s Licence (CMSRL) – granted to a representative to enable him to carry on any one or more regulated activities on behalf of his principal

The assessment process for these applications is shown here.

CMSL holders are required to submit forms via the following channels:
  1. Annual Reporting for Authorisation of Activity (ARAA) via Electronic Licensing Application System (ELA System)
  2. Fit and Proper Compliance Report by Licensed Corporation via SC Common Reporting Platform
All other forms need to be submitted via the ELA System for the respective applications as stated in the SC’s Licensing Handbook. Access to the ELA System is provided only to licensed CMSL holders.

Licensing Application Kits are available on the SC's website. For applications to be assessed and approved in accordance with the SC's client charter, the submission made must be accurate, complete and meet the requirements of the Licensing Handbook. The SC monitors licensees' continuous compliance with the provisions of the securities laws, licensing requirements and other conditions.
Client Charter

Type of Application

Time (weeks)





Who are licensed by the SC

The SC issues 2 types of licences namely CMSL and CMSRL for the following regulated activities:
  • Dealing in securities
  • Dealing in derivatives
  • Clearing for securities / derivatives1
  • Fund management 
  • Dealing in private retirement schemes2
  • Advising on corporate finance 
  • Investment advice 
  • Financial planning 

Employees of a holder of a CMSL for clearing for securities or derivatives will not be required to hold a CMSRL.
Agents and employees of a holder of a CMSL for dealing in private retirement scheme will not be required to hold a CMSRL. However, they must be registered with the Federation of Investment Managers Malaysia (FIMM) and comply with any provision or guidelines issued by the SC.
about the SC
The Securities Commission Malaysia (SC) was established on 1 March 1993 under the Securities Commission Act 1993 (SCA). We are a self-funded statutory body entrusted with the responsibility to regulate and develop the Malaysian capital market.

General Line: +603-6204 8000
General Email: [email protected]
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